Course Information
           
 
  Class Schedule                            General Information                            Continuing Education Credits                            Contact Us 


 

Course:

Evaluating Commercial Leases: The Tenant and the Terms Matter

SAP Course Number:

78TECH401181

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Course can be found when searching
"By Topic" under these categories:

Right-of-Way/Acquisition/Appraisal



Class Schedule


No Offerings Are Currently Scheduled









General Information

Summary:
This training is intended for an audience of real estate appraisers. This seminar introduces participants to how the terms of a lease and the risk profile of the tenant influence the valuation of commercial real estate. Participants will see how the business features of commercial leases affect the quantity and the duration of the income stream that a property will generate and the development of the property’s income statement.
Non-traditional sources of income, the proper period to use in measuring the income, measuring the real vacancy rate,
expenses that might not be recoverable by a landlord if a CAM formula is incorrect, and how other special clauses in a lease can all affect the property’s income stream will be examined. The second part of the seminar discusses tenant credit risk issues and explains why understanding a tenant’s financial strength is key to assessing the quality of the income stream.

Learning Outcomes:
• Define effective rent and distinguish between nominal rent and effective rent. Identify how calculating effective rent impacts property value.
• Recognize how familiarity with effective rent implications helps appraisers consult with landlords and tenants in lease negotiations.
• Identify how integration of the effective rent measurement impacts all three approaches to value.
• Evaluate proper methods of calculating effective rent and apply the conclusions in each approach to value.

Final Exam:
No



Continuing Education Credits


PA Board Approved
CEHs
Classes
After
 
CEUs
Classes
After
 
PDHs
Classes
After
 
Continuing Real Estate Appraisal:
7.50
01/25/22

Awarding continuing education credits (PDH/CEU/CEH) to a training course or other training event does not imply or guarantee that the training course/event is approved by the Pennsylvania State Registration Board of Professional Engineers, Geologists and Land Surveyors.

According to Pennsylvania Act 25, “Credit determination for activities…shall be the responsibility of the licensee.  Continuing professional competency obtained by a licensee should maintain, improve or expand skills or knowledge obtained prior to initial licensure, including law and ethics applicable to the profession, or develop new and relevant skills and knowledge.”

For informational purposes only:1 CEU is equal to 10 hours of instruction
1 CEH is equal to 1 hour of instruction



Course Contact Information

                    For technical questions regarding this course, contact the following...
Name:
Kimberly Rice
Phone:
(717) 783-4722
Email:
jbuggy@pa.gov

                    For general questions about the Training Calendar (such as those regarding schedules,
                    locations, instructors or registrations), see Contact Information in specific classes.
 
Created
Last Modified
By Jonie L Buggy/PennDOT
On 01/25/22 At 08:29 AM
By Daniel E Sanchez/PennDOT
On 01/25/22 At 10:58 AM